From ‘Taco’ to ‘Nacho’: the new buzzword on Wall Street as Trump preps for China trip

Wall Street investors are adopting a new market narrative, "Nacho," which stands for "Not a chance Hormuz opens." This acronym reflects a growing expectation of continued geopolitical gridlock and elevated oil prices, particularly with the upcoming Trump-Xi meeting and ongoing tensions in the Strait of Hormuz. This shift represents a significant change from the previous year's dominant strategy, "Taco" ("Trump always chickens out"), which assumed President Trump would de-escalate trade disputes. The "Nacho" sentiment suggests a belief that current geopolitical challenges, including the fragile US-Iran ceasefire and the Strait of Hormuz blockade, will persist, influencing investment strategies.

US President Donald Trump has declared the ceasefire with Iran is "on life support" after rejecting Tehran's latest proposal to end the conflict, deeming it "totally unacceptable." This statement comes as Iran's parliamentary speaker, Mohammad Bagher Ghalibaf, asserted that the US has "no alternative but to accept" Tehran's 14-point proposal. Iran's Foreign Ministry spokesman, Esmaeil Baghaei, stated that the US has made "unreasonable demands." Ghalibaf further warned that Iran is prepared to respond to "any aggression" with a surprise for the US. The situation indicates a significant impasse in peace talks between the two nations, with the ceasefire's continuation uncertain.

Iran and the United States remain at an impasse regarding the end of their conflict, with a fragile ceasefire showing signs of collapse. Recent exchanges of fire, targeting of ships, and renewed fighting between Israel and Hezbollah threaten to escalate the situation back into open warfare and prolong the global energy crisis. U.S. President Trump plans to leverage his upcoming trip to China to urge President Xi Jinping to pressure Iran into concessions. The core disagreement centers on Iran's demand for the lifting of U.S. sanctions and port blockades before negotiating its enriched uranium stockpile, which the U.S. and Israel view as a proliferation risk. Iran maintains its nuclear program is peaceful, while the U.S. considers Iran's response to its latest proposal "unacceptable."

President Trump stated that the ceasefire with Iran is "on massive life support" after dismissing Iran's peace proposals as "stupid." He is considering reinstating US Navy military escorts for ships through the Strait of Hormuz to counter Iran's blockade of the vital waterway. This comes after Iran sent counter-proposals to US conditions for easing conflict, which Trump rejected. The US had previously called off a plan for military escorts to allow Iran time to respond. Iran has indicated no further talks will occur unless its terms are accepted, while its foreign ministry spokesperson described their proposals as "reasonable."

On day 73 of the US-Iran conflict, diplomatic efforts for peace have stalled as both sides reject proposals. US President Donald Trump declared Iran's latest response "totally unacceptable," while Iranian state media characterized the US plan as a demand for surrender. Iran's proposal aimed to end the war on all fronts, particularly in Lebanon, and called for lifting sanctions while retaining control over its nuclear program and foreign policy. In contrast, the US had offered a plan to reopen negotiations. Tensions in the Strait of Hormuz continue, contributing to rising oil prices, with Brent crude reaching $104.01 a barrel. Meanwhile, regional incidents include the UAE, Qatar, and Kuwait reporting interceptions of drones originating from Iran. In Iran, a man was executed for allegedly spying for US and Israeli intelligence.

President Donald Trump stated that a ceasefire with Iran is "on life support" following the United States' rejection of Tehran's latest proposal. The specific details of Iran's proposal were not disclosed, nor was the exact timing of the rejection. This development indicates a significant setback in efforts to de-escalate tensions between the two nations. The statement suggests that the current diplomatic path towards a ceasefire is facing severe challenges. The US stance, as articulated by President Trump, implies a lack of willingness to accept Iran's terms at this juncture.

President Trump stated that a ceasefire with Iran is "on life support" after dismissing Tehran's response to a US peace proposal as "stupid" and "garbage." This rejection on Sunday has heightened concerns about the continuation of the 10-week conflict and its impact on shipping through the Strait of Hormuz. Iran's proposal, released on Sunday, focused on ending the war on all fronts, demanding compensation for war damages, asserting sovereignty over the Strait of Hormuz, and calling for the US to end its naval blockade, guarantee no further attacks, lift sanctions, and remove the ban on Iranian oil sales. Iran's Foreign Ministry defended its demands as "reasonable" and Iran's "legitimate rights." Efforts to reach an agreement between the US and Iran have been unsuccessful, with Trump threatening a return to war if Iran does not make concessions.

The US Treasury Department has instructed American banks and financial institutions to identify and report suspected Iranian money-laundering networks. These networks are reportedly using illicit funds to smuggle sanctioned oil through shell companies and cryptocurrency. This directive aims to disrupt Iran's sanctions-evasion infrastructure by leveraging the global financial system. The announcement coincides with a period of strained relations between the US and Iran, with President Trump stating the ceasefire is on "life support" after rejecting Tehran's latest proposal. The Treasury's action is a proactive measure to counter Iran's financial activities.

Pakistani officials claim the US and Iran are nearing a temporary truce in the Middle East, with a basic interim deal potentially reached this weekend. Tehran is reportedly reviewing a US proposal, though past negotiations for a permanent end to hostilities have stalled. This potential agreement, which could lead to the reopening of the Strait of Hormuz, has boosted global stocks and lowered oil prices. Pakistan has been a key mediator in indirect talks between Washington and Tehran. Recent escalations, including Iranian missile launches and US military actions against an oil tanker, have occurred amidst these diplomatic efforts. President Trump has expressed optimism about reaching an agreement.

US Secretary of State Marco Rubio has called on the United Nations to pressure Iran to cease attacks and threats to commercial shipping in the Strait of Hormuz. The US, along with Bahrain, Saudi Arabia, the UAE, Kuwait, and Qatar, has drafted a UN Security Council resolution that could lead to sanctions or authorize force if Iran does not comply. This move comes despite the Trump administration's previously hostile approach to the UN and its preference for unilateral action. The strait's closure has significantly impacted global oil prices and raised fears of an economic crisis. Rubio stated the resolution would test the UN's utility, urging China and Russia not to veto it.

Iran is reviewing a US proposal aimed at ending the ongoing war and resolving the global energy crisis caused by the blockade of the Strait of Hormuz. The proposal, reportedly a 14-point document, would require Iran to halt uranium enrichment for at least 12 years and not develop nuclear weapons. In return, the US would lift sanctions, release frozen Iranian assets, and both nations would reopen the Strait of Hormuz within 30 days of an agreement. US President Donald Trump expressed optimism about reaching a deal, stating Iran desires an agreement. US negotiators, including envoy Steve Witkoff and Jared Kushner, are leading the talks. If preliminary agreement is reached, it would trigger 30 days of detailed negotiations for a full accord.

Iran has mocked Donald Trump's "Project Freedom," a plan to open the Strait of Hormuz, after it was abruptly suspended. The operation reportedly failed because Saudi Arabia denied the US military access to its bases and airspace. This decision may have stemmed from Riyadh not being consulted beforehand or following an Iranian attack on oil facilities in Fujairah, which highlighted a perceived lack of US protection for its allies. Despite Trump's claims of a peace deal opportunity, the plan's failure left commercial shipping largely unaffected. Iran is now reviewing a US proposal with 14 points, which it views as an American wishlist, while Iran's own 14-point plan was previously rejected by the US.

Donald Trump's "Project Freedom," intended to provide military escorts for oil tankers through the Strait of Hormuz, was shelved after Saudi Arabia refused to grant the US access to its bases and airspace. Riyadh informed the White House that Prince Sultan airbase would not be used for the operation, despite a personal appeal from Trump to Crown Prince Mohammed bin Salman. Saudi Arabia reportedly feared the project lacked clear engagement terms and could escalate into a dangerous naval confrontation between the US and Iran, potentially jeopardizing a fragile ceasefire. This refusal highlights Saudi Arabia's desire for de-escalation with Iran, contrasting with the more assertive stance of the UAE, which has been a primary target of Iranian attacks and feels a lack of Gulf solidarity.

Oil prices have eased following the US pause of "Project Freedom," a military initiative aimed at ensuring energy flow through a key maritime channel. This pause, according to US officials, signifies a willingness to pursue diplomatic solutions with Iran, with the stated objective of reaching a comprehensive agreement. While the US will maintain its blockade of ships to and from Iranian ports to exert economic pressure, traders view the pause as an attempt to give diplomacy a chance. However, it is not yet considered a turning point, as the impact on reopening trade through the Strait of Hormuz remains uncertain. The US Secretary of State indicated that initial offensive objectives in Iran have been met, and the preference is for a peaceful resolution and a deal. Iran has not yet officially responded to these remarks.

Iranian Foreign Minister Abbas Araghchi met with Chinese Foreign Minister Wang Yi in Beijing on May 6, 2026, amid escalating US-Iran tensions over the Strait of Hormuz. The meeting highlights China's significant interest in the conflict, particularly concerning the disruption of global oil and gas flows. Wang Yi emphasized the urgency of a ceasefire and continued negotiations. The visit precedes a meeting between US President Trump and Chinese President Xi Jinping, where the US has urged China to pressure Iran to ease its blockade of the strait. Both the US and China are experiencing economic impacts from the shipping disruptions, suggesting a shared interest in reopening the Strait of Hormuz.

Chinese Foreign Minister Wang Yi met with visiting Iranian Foreign Minister Abbas Araghchi in Beijing on Wednesday. During their meeting, Wang Yi called for the swift reopening of the Strait of Hormuz. He stated that the international community shares a common concern for restoring normal and safe passage through the vital waterway. China expressed hope that the parties involved would promptly address these strong international calls. The meeting focused on the importance of maintaining open shipping lanes in the Strait of Hormuz.

A cargo vessel was struck by an unknown projectile in the Strait of Hormuz, according to the UK Maritime Trade Operations. This incident follows the UAE's report of engaging missiles and drones from Iran for a second consecutive day, an action Iran denies. The Strait of Hormuz, a vital oil and gas transit route, has experienced significant disruption following a US and Israeli operation against Iran and Iran's subsequent blockade. A ceasefire was announced in early April, but transit remains limited, with both the US and Iran reporting confrontations in the strait. In light of these ongoing tensions, Donald Trump has announced that "Project Freedom," aimed at unblocking the strait, will be paused temporarily.

US President Donald Trump announced "very good talks" with Iran, suggesting a deal to end the ongoing war is possible. Trump stated that Iran must suspend its nuclear program and reopen the Strait of Hormuz, warning of renewed bombing if negotiations fail. While Trump expressed optimism about reaching an agreement before his trip to China, Iran's Foreign Ministry spokesman downplayed reports of an imminent deal, stating Tehran has not formally responded to the latest US proposal. Diplomatic exchanges are continuing via Pakistan, with sources indicating a memorandum to formally end the conflict is close to agreement. The war, which began on February 28, involves ongoing disputes over Iran's nuclear ambitions and control of the Strait of Hormuz.

Iran is reportedly considering a US proposal aimed at ending the current conflict, according to an Iranian foreign ministry spokesperson. While Iran reviews the proposal, a parliamentary official warned of a "harsh and regret-inducing response" if the US does not concede. Former President Trump also threatened intensified bombing if a deal isn't reached, while claiming Iran has agreed to forgo nuclear weapons. The US previously stated its offensive operation had concluded after achieving objectives. The conflict has significantly impacted the Strait of Hormuz, a vital oil transit route, with a ceasefire in place since early April, though maritime traffic remains limited.

President Trump's foreign policy regarding Iran has seen rapid shifts in recent days. Initially, he suggested Iran had not faced sufficient consequences, then proposed "Project Freedom" as a humanitarian effort to ease tensions in the Strait of Hormuz. However, by Wednesday, Trump announced significant progress towards a complete agreement, pausing Project Freedom to allow for negotiations. These policy changes reflect the administration's struggle with Iran's capabilities, including its ability to disrupt shipping and its nuclear program, within a complex geopolitical situation. Reports indicate a potential memorandum of understanding with Pakistan as a mediator, aiming to end blockades and initiate talks on Iran's nuclear program, sanctions, and frozen assets.

US President Donald Trump announced on Tuesday a temporary pause of "Project Freedom," a US military operation to facilitate ship movement through the Strait of Hormuz. This decision, made at the request of Pakistan and other nations, is intended to allow for the finalization of a potential agreement with Iran. The pause comes amidst heightened tensions in the Gulf, following US military actions against Iranian boats and drone attacks on commercial vessels. Secretary of State Marco Rubio stated that US offensive operations have concluded but warned Iran must still face consequences for its actions in the strait. Iran has not yet commented on the announcement.

President Trump has announced a pause to "Project Freedom," a plan related to the Strait of Hormuz, just one day after its announcement. Senator Marco Rubio stated that the US has achieved its objectives in the operation against Iran, suggesting the offensive is now over. This development comes as Iran's Foreign Minister, Abbas Araghchi, travels to China. Trump indicated he hopes to finalize a deal with Iran, leading to the temporary halt of the initiative. The price of Brent crude has remained stable around $108 a barrel since the announcement, while jet fuel prices have doubled since the conflict began.

Tensions escalated in the Gulf this week following conflicting claims between the US and Iran regarding incidents in the Strait of Hormuz. The US announced "Project Freedom" to escort stranded ships through the strait, which Iran had threatened to fire upon. Iran's Fars News Agency reported Iranian drones hit a US warship, a claim denied by the US, which in turn stated it sank IRGC vessels. Iran denied its vessels were hit and presented a map showing expanded control, including UAE territorial waters. The UAE subsequently accused Iran of missile and drone attacks on Fujairah, damaging an oil refinery. These accusations follow a pattern of reciprocal claims since the start of the US-Israel war on Iran on February 28th, threatening diplomatic efforts.

A month-old ceasefire between the US and Iran is under strain following renewed hostilities. Iran reportedly launched missiles at the United Arab Emirates for the second time in 48 hours, while US naval forces are escorting tankers through the Strait of Hormuz, a vital oil shipping route. US Defense Secretary Pete Hegseth stated the truce remains intact despite increased violence, though Iran's parliament speaker accused the US of breaching the ceasefire. The conflict, triggered by an Israeli strike on Iran's supreme leader, has led to significant economic disruption, with hundreds of ships stranded and oil prices spiking globally. Both nations appear to believe they are nearing victory, contributing to the stalemate.

A drone attack from Iran struck a key oil facility in Fujairah, UAE, causing a large fire and injuring three Indian nationals. This incident followed the UAE's interception of missiles launched from Iran and reports of a tanker affiliated with its state-owned oil company being hit in the Strait of Hormuz. The UAE described the attacks as a "dangerous escalation," though an unnamed Iranian official denied targeting the UAE. Simultaneously, the US reported its navy destroyers and merchant ships sailed through the Strait of Hormuz, while Iran claimed to have fired warning shots at a US warship, which Washington denied. Later, the US stated it had intercepted seven Iranian fast boats in the strait, a claim Iran denied. These events occur amidst ongoing tensions and a de facto blockade of the Strait of Hormuz, a vital oil transit route.

A U.S.-backed proposal, "ARAM Express," aims to build a network of overland energy pipelines to bypass the Strait of Hormuz. This initiative, a collaboration between the United States and Gulf partners, seeks to create multiple export routes for oil, gas, and petrochemicals westward to the Red Sea and Mediterranean, and south towards the Arabian Sea. The plan is gaining traction amid escalating tensions with Iran, which has threatened shipping in the Strait of Hormuz, a critical chokepoint through which approximately one-third of global seaborne oil currently flows. The proposal envisions international participation from European and Asian buyers seeking supply resilience. This effort complements U.S. "Project Freedom," which aims to ensure freedom of navigation in the Strait.

The United Arab Emirates reported intercepting 15 missiles and four drones fired from Iran, marking the first UAE targeting since an April 8 ceasefire. One drone attack caused a fire at a Fujairah petroleum zone, injuring three Indian nationals, while an empty crude oil tanker was also attacked near the Strait of Hormuz. Iran has denied the accusations. Several countries, including Saudi Arabia, Qatar, Kuwait, Bahrain, and Jordan, condemned the attacks, denouncing them as a threat to regional security and a violation of UAE sovereignty. Germany, the UK, and Canada urged Iran to return to talks.

Iran has released a map expanding its declared maritime control beyond the Strait of Hormuz, a crucial chokepoint for global oil trade. This move follows US efforts to reopen the strait, which has been largely closed since a conflict began in late February. The announcement coincides with drone and missile attacks in the UAE, which the UAE attributes to Iran, though Tehran has not officially confirmed responsibility. Analysts suggest Iran views control of the Strait of Hormuz as essential leverage in its ongoing conflict with the US and Israel. This strategic importance means Iran is unlikely to relinquish its influence over the waterway.

The Strait of Hormuz standoff, triggered by escalating tensions between the US and Iran, poses a significant risk of renewed conflict with global economic repercussions. Iran's actions, including threats to close the strait, have already led to shortages of oil, gas, helium, and fertilizer, impacting millions worldwide and potentially causing hunger in vulnerable nations. President Trump's complex and evolving strategy, including attempts to influence oil prices and military escorts through the strait, has left the US in a strategic bind due to Iran's resilience. Iran appears to be targeting the UAE among its Gulf neighbors, prompting the UAE to strengthen its alliances with the US and Israel, with Israel deploying an Iron Dome system and soldiers to the UAE.

Tensions are escalating in the Strait of Hormuz as Iran warns it will attack US forces if they interfere with Iranian operations there. This comes after President Trump stated the US Navy would "guide" stranded ships through the strait, asserting that any interference would be "dealt with forcefully." The Iranian military has vowed a "harsh response" to any threats. Meanwhile, the IDF has launched airstrikes on Hezbollah infrastructure in southern Lebanon, following evacuation warnings for four villages. A ceasefire in Lebanon, initiated on April 17th at the US's request, aimed to prevent disruption to peace talks with Iran.

Tensions between the US and Iran have escalated around the Strait of Hormuz, pushing a fragile ceasefire to the brink. President Trump has threatened Iran with severe retaliation if it attacks US ships, emphasizing America's superior military capabilities. The US military has launched "Project Freedom" to guide vessels through the strait, claiming to have assisted two merchant ships. However, ship-tracking data suggests traffic remains largely suspended, with dozens of vessels from 87 countries reportedly stranded. These developments follow renewed hostilities, including an Iranian attack on the UAE and reports of the US shooting down Iranian boats. A South Korean vessel also experienced an explosion and fire off the UAE coast, and fires were reported on two other ships in the region.

President Donald Trump has threatened to "blow Iran off the face of the earth" if it attacks U.S. vessels attempting to reopen the Strait of Hormuz. The U.S. launched an operation to assist hundreds of ships and thousands of crew members stranded by Iran's blockade of the vital waterway. While the U.S. military reported destroying Iranian boats and intercepting missiles and drones, Iran denied these claims and warned of strikes on approaching U.S. naval vessels. Trump described the U.S. naval effort as a significant maneuver and asserted the U.S. possesses superior weaponry. These threats raise concerns about a fragile ceasefire brokered last month, which aimed to resolve the blockade impacting global oil supplies.

U.S. Ambassador to the United Nations Mike Waltz is spearheading a new UN Security Council resolution aimed at stopping Iran from mining the Strait of Hormuz. This diplomatic effort seeks international backing for the ongoing U.S. maritime operation, Project Freedom, which is designed to secure commercial shipping through the critical global trade route. The resolution intends to hold Iran accountable for violating international law by laying sea mines, demanding they cease this activity, disclose mine locations, and cooperate with the UN to establish humanitarian corridors. This initiative follows recent U.S. military actions to protect vessels threatened by Iranian forces in the strait. The resolution is being developed in cooperation with Bahrain and GCC countries.

The United Arab Emirates reported intercepting ballistic missiles, cruise missiles, and drones originating from Iran. The UAE Ministry of Defence confirmed the interception of three missiles and a fourth falling into the sea, with no immediate reports of casualties. Separately, an Iranian drone reportedly caused a fire at an oil facility in Fujairah, injuring three Indian citizens. These incidents occurred amidst heightened tensions in the Gulf, particularly concerning blockades in the Strait of Hormuz and failed ceasefire extension efforts. While a senior Iranian military official denied plans to target the UAE, the drone attack broke a period of relative calm following a US-Tehran ceasefire.

U.S. Treasury Secretary Scott Bessent urged China on Monday to increase diplomatic pressure on Iran to reopen the Strait of Hormuz. Speaking in a Fox News interview, Bessent stated that China, which imports 90% of Iran's energy, should leverage its relationship to influence Iran. He emphasized that while the U.S. maintains "absolute control" over the strategic waterway, China has a role to play in de-escalating tensions. Bessent's remarks highlight the U.S. desire for international cooperation in ensuring freedom of navigation in the critical shipping lane, linking China's energy purchases from Iran to its potential diplomatic influence.

US Treasury Secretary Scott Bessent has accused China of "funding the largest state sponsor of terrorism," referring to Iran, due to Beijing's significant energy purchases. Bessent made these remarks ahead of President Trump's upcoming visit to China. Despite the criticism, Bessent urged China to collaborate with the US in reopening the Strait of Hormuz, which Iran has blocked. He stated that the US has "absolute control" of the strait and is working to reopen it, suggesting China use its influence to encourage Iran to resolve the crisis diplomatically. Bessent also noted that China and Russia have previously blocked UN Security Council condemnation of Iran's actions.